Buying a new home is likely to be the biggest single purchase you will ever experience. No matter how good of a deal you find, it will still cost you a fortune. It’s also important to understand that the slightest little mistake in the buying process could cost you even more. With this in mind, I thought I would run through some of the key points you need to consider when buying a new home. There is a variety of tactics you can employ - so let’s dive in right away and explore these amazing thrifty guidelines for buying a new home.
Play the interest rates--
Before you even start looking for a home, it’s important to know how much you can borrow - and the sort of interest you can expect to pay. The interest payments are probably the most important factor here. The slightest increase in a percentage point can leave you paying way more than you have to over the next 15-30 years. If you struggle to find a mortgage that isn’t costing you a fortune, it’s worth taking some time out and improving your credit score first. In simple terms, the better your credit score-- the better deals you will find on the table.
A bigger deposit--
If you have savings, it might be worth using them to put towards a deposit for your new home. Yes, it’s an enormous expense - but the more you put in, the better deal you will find. More importantly, the less you will have to pay every month for the next 15-30 years. It means you will have more money available to you for other areas in your life - and you could even pay off your mortgage faster!
Location, location, location--
Deep down, we all want to live in the best areas - it’s only natural. But the trouble is, living in select locations costs you a lot more money than elsewhere. You pay an enormous premium - but is it necessary? There is some useful info about real estate from Marshall White, which explains the kind of things you should consider when buying a home. If you can find a location that satisfies your needs but is outside of the ‘exclusivity ring’ you will find you get much more home for your money.
Always hire a property inspector--
A property inspector will cost you a few hundred bucks, but they could also save you tens of thousands. The inspector's job is to look over the property from top to bottom. They will find any little defects that you might not notice, or will point out any areas that need repair. Once you have that inspector's report, you can then approach the seller and ask for a discount. They might be willing to have the work done for you or agree to your offer. Either way, you can shave off a considerable chunk of money from your expenditure on your dream home.
Finally, think about putting flyers through the doors of homes in the area you want to move to. If you can find someone who is thinking of selling but hasn’t signed up to an estate agent, you might be able to cut a deal. You’ll both avoid the sometimes-heavy charge of the agencies, and could secure a fairer price that suits both parties.